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VENDING-MACHINE-BUSINESS5 MIN READ

Route math at your fingertips

Recall the formulas and trade-offs that guide vending break-even, reorder, cash, and order-size decisions.

Margin What is contribution margin per vend? Sale price minus product cost, payment fee, sales tax treatment if embedded, and percentage commission. Use it before changing prices or accepting commission terms. Break-even What is break-even units for one location? Monthly fixed cost divided by contribution margin per vend. Compare this unit floor with realistic demand before installing. Inventory Reorder point vs. EOQ: which question are you answering? Use reorder point for timing; use EOQ for order size. Supplier discount The case price is lower if you buy 20 cases today. You are considering a slow SKU with uncertain demand. Your…

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